Updates to the State Operations Manual (SOM) Chapters 2 and 3 Related to Excluded Hospitals with Excluded Units

• In the Fiscal Year (FY) 2019 Inpatient Prospective Payment System (IPPS)/Long-Term Care Hospital PPS (LTCH PPS) final rule, the Centers for Medicare & Medicaid Services (CMS) revised regulations to specify that, effective with cost-reporting periods beginning on or after October 1, 2019, an IPPS-excluded hospital may have an excluded psychiatric and/or rehabilitation unit. • To align with the payment regulations, CMS is updating sections of SOM Chapters 2 & 3 where the certification process for excluded hospitals and units are discussed. These updates address the process for complying with the regulations, including the assignment of CMS Certification Numbers (CCNs).